The Zhitong Finance App learned that for the majority of the incoming Democratic Party in the National Assembly, using affordability and cost of living as the main axes of the election campaign is an obvious choice. Now comes the hard part: keeping those campaign promises.
Democrats say they will act quickly to restore Medicare benefits under the Affordable Care Act (ACA) and reverse cuts in federal Medicaid (Medicaid) and food aid by the Trump administration and congressional Republicans. New York State Representative Hakeem Jeffries (Hakeem Jeffries), who is expected to be the Speaker of the House of Representatives, also said that the House of Representatives will vote to abolish some government tariffs — which are driving up costs for businesses and consumers.
But the party will be subject to multiple restrictions: President Trump still controls the executive branch and has veto power, the fiscal outlook is grim, and the Federal Reserve may raise interest rates further. In addition, there is a persistent policy problem: there is no simple solution to the cost of living problems such as housing and fuel.
Maya MacGuineas (Maya MacGuineas), president of the non-partisan agency “Committee for a Responsible Federal Budget” (Committee for a Responsible Federal Budget), warned that there is a risk of “political acceptance” — the current US deficit accounts for about 6% of gross domestic product (GDP), and more spending could make the situation worse in the short term.
“The Democratic Party's affordability agenda is highly dependent on our fiscal responsibility. “Once people understand that when the deficit is so high, you can neither lower interest rates, nor lower prices, let alone raise wages,” Magginias said in an interview. To control rising debt, both spending cuts and tax increases are needed, she added.
How to return voters' trust on economic issues has revealed differences within the Democratic Party, including some who won the party's most dramatic victory this month.
South Carolina Senator Elected Annie Andrews (Annie Andrews) said she would rather cooperate with Trump to advance her party's goals on the cost of living issue rather than focus her energy on a “journey of revenge.”
“I'm willing to work with President Trump to secure the border, stop these Medicaid cuts, and find a way to end this war,” Andrews said in an interview after winning the election. “Confronting the government won't lower the price of gasoline and groceries, nor will it solve the problems I've heard over the past 18 months.”
However, this instinct is viewed as unacceptable by many in the party. They believe that the nationwide denial of the Republican Party is an authorization for bold policy actions — including actions on economic issues.
“When we're in power, we have to use that power to do something,” said Rebecca Katz (Rebecca Katz), Democratic strategist and Fight Agency co-founder. She participated in several of the party's electoral victories, including the election of Michigan senator elected Abdul El-Sayed (Abdul El-Sayed), and last year's election for New York Mayor Zohran Mamdani (Zohran Mamdani).
Katz spoke on Tuesday at a forum organized by the progressive economic think tank Groundwork Collaborative, where the party's advisors and lawmakers — including Massachusetts Senator Elizabeth Warren (Elizabeth Warren) and Maryland Senator Chris Van Hollen (Chris Van Hollen) — discussed how to prove to voters that they are acting on voters' economic concerns.
Since Trump first signalled his willingness to cooperate with the Democratic Party, Warren has been urging his party to “break through his bluff” and submit a range of new legislation to the president in batches, from drug pricing to the war in Iran.
But party strategists also say that using public opinion forums to get better prices and treatment for consumers may be just as important — and may even be more effective than trying to reverse economic forces that are difficult to control.
“This group of Democrats who have just taken office is in a delicate position: they are authorized at the federal, state, and local levels, but they don't control administrative branches at the federal level,” said Alvaro Bedoya (Alvaro Bedoya), a former Federal Trade Commission (FTC) member. He served as legal counsel to Democratic Senator Al Franken (Al Franken) of Minnesota.
Bedoya cites Instacart as an example: within days of receiving an open letter from a Democratic senator, the company abandoned a trial of floating pricing for groceries. He said in an interview that this is a strategy the party can replicate.
“If you send a supervisory letter to a listed company, the response is often much quicker because that company must respond to consumers and media uproar,” Bedoya said.
During the Biden administration, congressional Democrats and the government publicly named pharmaceutical companies for patent practices, leading companies such as Boehringer Ingelheim (Boehringer Ingelheim), AstraZeneca (AZN.US), and GSK.US (GSK.US) to voluntarily set the price cap for inhalers at $35.
According to Alex Jacquez (Alex Jacquez), senior vice president of policy, advocacy and research at Groundwork Collaborative, in the next Congress, Democrats can exert similar pressure on utilities, healthcare, and rental companies over price increases or potential collusion. The organization has been working with congressional Democrats to develop economic strategies.
“You can imagine looking at algorithmic rent collusion or tenant service fees in the housing market, and then in terms of medical costs,” Hax said, referring to pharmaceutical companies and pharmaceutical benefit managers (PBM).
Ben Harris (Ben Harris), director of economic research at the Brookings Institution and who served as Assistant Secretary of the Treasury during Yellen's tenure, said that Democrats can also use chips in negotiations on the annual budget and raising the US government's debt limit, forcing cuts in SNAP (Supplemental Nutrition Assistance Program), Medicare, and Medicaid to be rolled back. The US is expected to hit the debt ceiling authorized by Congress next year.
Harris also believes that the tense relationship between moderate and progressive Democrats on the issue of affordability will continue to be interpreted: more left-wing voices advocate “tougher measures,” such as rent control; centrist Democrats pay more attention to housing, health care, and education.
Party organizers said that the new majority party's biggest risk is not being bold enough. “It's going to be hard for us to deliver on our promises,” said Amanda Litman (Amanda Litman), founder of the non-profit organization Run For Something. The organization is responsible for recruiting candidates for public office. “We're seeing this with Trump right now: voters will notice. Don't open checks you can't keep, and don't make promises you can't keep. I'm worried; this is a real concern.”